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the country that we are going to hit the debt ceiling on new year's eve. congress needs to wake up and smell the cau tee that the spending needs to be addressed. >> so david, hard to believe that we are still talking about this. did you see it happening like this? >> is washington so pro den that they can't find a compromise. >> i think the country will get back on track, but it is going to take a prwhile. damage has been down. business plans are down. business sentiment is down. we are are going to pay a price. the senate hasn't acted or called back to act on a bill between christmas and new year's for 49 years. i think the prospects are strong that we are going to go over the cliff. the republicans are going to clearly get most of the blame if we go over the cliff on taxes but the republicans have an argument. the president promised us. he would put on the table spending decreases. when you look at the republicans, was it a mistake? >> they could have had a more popular message right? >> the truth is they would have been a lot better off taking the deal. it was a better deal all the way ar
of february. those moves include suspending some benefit funds. congress must vote to raise the debt ceiling setting the stage for another fight on capitol hill. >>> some people wrapped up their 2012 by donating to charity. all day and night car after car dropped off in donations at the salvation army center in alexandria. many people got in a final big donation before the end of the year for tax purposes of course. others gave away their old things to make way for new stuff santa brought them. >> a tremendous turnout with donations. again, you know, the salvation army does a lot across all over the world so people feel comfortable coming here with their donations and we take good care of the stuff that they donate. >> the salvation army estimates some 1700 cars came by its alexandria center yesterday alone. i've been giving to goodwill the last couple of days to get rid of stuff, get in the tax donations and it's the right thing to do. >> that place is huge. just pull in. >> on this last day of the year, it is unbelievable. thank you. >>> hillary clinton, her blood clot is very close to her
cuts to the pentagon and other agencies will be in up in months. and the debt ceiling deal will be reached in two months if congress does not act. jim moran is not confident working out a deal will be easy. >> just increasing the deficit by $3.90 trillion, which will now force us to dramatically street the size of government and that will have an adverse impact on the washington area. >> the president returns to hawaii, so it's not clear when he will sign the bill. brianne carter reporting. >> secretary of state hillary clinton continues to recover from public clocked at a new york hospital. she was last seen in public three weeks ago before she fainted and was fossilized with a concussion. doctors ran some scans which revealed the blood clots between her brain and her skull. the good news is they say there will likely be no long-lasting neurological damage. >> today is the first day back to school for the students of sandy hook elementary. there are attending open house at every purpose of building in monroe conn. will start class tomorrow. workers and teachers have been g
will not have -- debt ceiling. >> i will not have another debt over this congress over whether or not they should pay the bills they've already racked up. >> reporter: and maryland's chris van hollen, the ranking member of the democrats on the budget committee, expects the president will stand firm. >> we should not be playing any political games with the debt ceiling. that is the economic equivalent of a nuclear weapon. it would make this whole idea going over the fiscal cliff look like a cake walk. >> reporter: but many republicans think it is the next best chance to control the cost of medicare and social security. bruce leshan, 9 news now. >>> wall street showed its approval of the bill with a big gain today. the dow closed up 308 points. among the provisions tucked into the 150 page bill, an estimated $222 million in extended excise taxes for the rum industries in puerto rico and the assever engine islands and an estimated 4 -- and the u.s. virgin islands and an estimated $400 million intax deductions for the u.s. film and tv industries. >>> a piece of the federal transi
is hitting the date ceiling. >> if congress refuses to give the united states government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic. far worse than the impact of a fiscal cliff. >> reporter: and while things look good upon wall street today, investors say don't get used to it if congress remains so divided. live in washington, kyla campbell, ktvu channel 2 news. >> we have much more on last night's fiscal cliff vote on our channel 2 website. go to ktvu.com, click on the tab right there on the front page. >>> happening right now, some members of congress are now on the floor of the house of representatives calling for a vote on legislation to help the victims of superstorm sandy. those lawmakers are furious because the republican house leadership ended last night's session without voting on the sandy bill. new york congressman peter king calls it a cruel knife in the back. >> i have to go home this weekend and next week and the week after and see the hundreds and thousands of people who are out of their homes, who don't have s
, round two is in a couple of months when congress has to raise the debt ceiling to keep the country from default. trace? >>trace: thank you, wendell, from the white house. joining us now is columnist for the congressional newspaper "the hill." i have to go on what wendell says, if you are speaker boehner and you walk to the house of representatives members and say there is kind of a deal but no spending cuts. how does that fly? >>reporter: that is the problem. what you see are words of hope from the republican leader on the senate side how we are very close to what has to be fixed, the tax rates. he is trying to put a positive spin on that. we knew they would be fixed. the worry all along was, were we going to see a replacement for the draconian sequestration cuts everyone hated on both sides of the aisle for 17 months. here we are, in the final stretch, the 11th hour, surprise, both have given on the tax issue because neither could stand to go over the fiscal cliff, the tax cliff but that is giving of money, medicare fix, an alternative minimum tax patch, and more unemployment insurance
: the debt ceiling first established in 1917. since then the debt limit has been raised 102 times, congress voted to raise the debt limit, 11 times since 2001. right now the national debt is over 16 trillion dollars and counting every second. there it is. patti ann: meanwhile hopes of a budget deal in washington and higher home prices are combining to send the price of oil back up again. heating oil rising four cents to more than $3 a gallon. wholesale gasoline rising six cents to $2.78 a gallon. current national average is $3.26. national gas up 4 cents to 3.38 for 1000 cubic feet. gregg: we are taking a dangerous winter storm blamed for nine death at this hour. that storm is slamming the northeast. this is video from worcester, massachusetts. this was actually this morning. you can see what folks are trying to deal with there. the storm hitting the middle of the country overnight. dumping more than a foot and a half of snow in some areas grounding flights up in the air, stranding travelers, leaving hundreds of thousands of folks without any power. anna kooiman is live in clark summit that
ceiling. that's a fight congress is going to have in january and february. >> nancy cordes thank you. more than $100 billion in required spending cuts would also kick in if there's no deal. at the white house, major garrett says the obama administration is getting ready for those across the board cuts. major, what exactly is the white house doing to prepare? >> reporter: good morning, norah and anthony. the obama administration is in the final stages of delivering layoff notices it will deliver to federal agencies across the government, this to comply with across the board spending cuts 6% to 7% that are required in the so-called fiscal cliff. agencies will decide which employees to lay off and when. as part of these preparations, the administration also has notices it will soon deliver to delay or cancel federal government contracts. as for negotiations themselves it is a bit of a team effort here at the white house. president obama is dealing directly and spoke frequently sunday with the senate majority leader harry reid while vice president joe biden spoke freque
to pressure the congress to act to raise the debt ceiling. that is not directly implicated in the fiscal cliff talks, but it's part of the larger issue of debt and deficit that congress has to deal with. secondly, house run leaders conferred and sent a letter to democrats to say it is up to the senate to act. the house has already acted on a bill to avert the fiscal cliff. democrats have no intention of taking up that house bill, which would extend all of the tax cuts into 2013. the approximated says he's not going to do that. plus a senate democrat leader told me there is a possibility of extending tax cuts for those under $250 thoid, but turning off the automatic across the board budget cuts. that will be a temporary measure. and finally, president obama has returned from his vacation in hawaii to try to kick start those talks. but the white house officials tell me there are no signs of progress yet. they have to hope that when members come back to washington on the 27th, that is thursday wblg that both the president, democrats in the senate, republicans in the senate and then both parties i
passed in congress does not address, among other things, the nation's debt ceiling which we have already hit setting up the next economic dialog to be played out the coming weeks. here you thought the fun was over. it congress does not raise the debt ceiling the federal government will not be able to pay its bills and here is a look at the situation when the president took office and today, when it comes to the national debt. in january of '09 the debt stood at 10.6 trillion dollars, and by the end of the president's first term, the national debt has risen to more than 16.3 trillion dollars. that's about a 54% increase in over four years. but while the president acknowledges that the deficit and the debt are too high, he warns he is not budging when it comes to another debt ceiling increase. >> while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that they've already wracked up through the laws that they passed. >> the president hasn't had a budget in his entire presidency, no matter who was in charge in
was done yesterday is that was repealed by the congress, certainly a positive. on the debt ceiling, i think early -- i'm not going to talk to you guys about the debt ceiling is a real mistake. the house, those individuals are independently elected, not children, elected officials in the united states and they have to come together, as they did last evening and the day before, to address some very very serious short term problems. we avoided an embarrassing calamity. there's a disaster down the road and hopefully the president will be at the head of the table and not have a surrogate do his negotiating. >> governor rendell, we're seeing criticism of the fiscal cliff from both sides. i saw some criticism from the far left about not wanting to make permanent the bush tax cuts, et cetera. i would imagine your criticism would not come from the far left, you probably would criticize us like a republican. are you troubled by the lack of any spending restraint? >> sure. the campaign to fix the debt i am co-chair with greg judd and mike bloomberg, we are disappointed like many americans are. frank s
-h-p helicopter. >> it is not just the physical cliff. they're also going to be dealing with the debt ceiling. suspending in ban investments and for the end of february, it will be out of money unless congress raises the debt ceiling. increased every year since 2004. also, the state of maryland is embracing same-sex marriage. at the beginning of this new year. we will see the mid 40's by this evening (music) [ male announcer ] the career landscape of america is changing. new jobs are here, and by 2025, we could have millions more that demand qualified college graduates. many in the bay area. at devry university, our market-responsive bachelor's and master's degree programs can give you what you need to succeed in today's careers and the ones on the horizon. get the know how you need for a new tomorrow at our 4 bay area locations, online or both. learn more at devry.edu. and let nothing stand in your way. 1 million people >> an estimated 1 million people gathered in times square. what a chilly night. here is a here is a lot from around the world (music) a lo >>> a great look around the world.
't predict what's going to happen next year, much less ten years. and you are right, future congresses can change. last year when we had the big debt ceiling fight and the budget control act and everybody was worried about that, we pass add budget control act and set limits on spending, we exceed them all the time. we bring up a point of order and they said we decided we don't care anymore, a year later. so they don't obey their own rules. it's why people are so frustrated with congress is he pass rules on ourselves like we are supposed to read the bills and brent them up and put them on line and we disobey the rules. the majority votes and say we don't care. >> we will hit the debt ceiling soon. two questions. one, would you agree for any reason to raise the debt ceiling, and number two, if we hit the debt ceiling, does this mean the americans will not get their tax refunds when they apply for them in january, february and march or will they be delayed? >> i would raise the debt ceiling under one condition and that would be a balanced budget amendment to the constitution. barring that, pe
ceiling? >> well, we're only allowed to borrow so much without asking congress for a higher debt ceiling. in other words, every time the president wants to spends more money, he has to go to congress and ask for authorization and that's the way it works, to have the people elected approve spending increases. right now, 16 trillion dollars in debt, we're bumping our head on the debt ceiling right this very minute and let me tell you, when you look the at how much money we're spending compared to our gdp, we're similar to spain, we're similar to greece, it's not a pretty scenario. >> harris: well, tell me this: what actually happens when we nudge up against it? >> well, everybody starts wondering when they're going to rise the debt ceiling, there's big pressure on republicans in congress to approve that. it's a big debate with them because they don't like to and then you have all of wall street looking at this, wondering whether we're going to be able to pay our bills and remember what happened last time around, the markets sold off 2000 points over a two month period. it was very dramatic
'll have the conversation with them. maria, the president saying i'm not getting into a fight with congress about paying for the bills that we've already run up. that's is a direct reference to the debt ceiling that was hit yesterday. he's saying he's not going to have a debate. here's my problem with that. he shouldn't have to. the debt ceiling is a stupid technical thing that only exists in america and the law really has to be changed. it's as simple as that. people think this is very simplistic, you should have a credit card limit. in other countries, you pay for a law as you make that law. it's a silly thing. but for the president to say he's not going to have a debate about it, he is going to have a debate about it. apparently we debate about everything. >> if the president says it's a certain day, republicans are sure to say that it's not that day. look, yes, there will be a debate. i think what he was talking about, though, ali is we're not going to get to the brinksmanship and i think he hopes and all americans hope we don't get to the point where we were the last time we had the si
's not forget last year's debt ceiling debacle, which president obama has vowed never to repeat. >> if congress in any way suggests that they're going to tie negotiations to debt ceiling votes and take us to the brink of default once again as part of a budget negotiation, which, by the way, we have never done in our history, until we did it last year, i will not play that game. >> won't play that game. never done in history. will the president stick to that and not allow another debacle, a debacle, if we want to be british or american, of the debt ceiling vote to be tied to budget cuts like it was last time around? >> whether it's a debacle or a debacle. we'll find out very, very quickly. the president is standing his ground so far, he is saying that he is not going to compromise on what was essentially a very central issue in the campaign. that is, are we going to see bush tax cuts continue for people who are richer than $250,000 and, you know, the republicans in congress, as you recall, last week, they said that they will not vote a tax increase, even on millionaires. house republicans have b
to force action. otherwise congress would never get it done. that is speaker boehner's leverage with the debt ceiling. so i think we could do a lot better with the type of people that we're electing to congress, moving away from the extremes and bringing more centrists who can work together. i could give you a long speech about that when you combine those two things, you don't get a great work product. adam: congressman jason altmire, you mentioned harmonic convergence that happens in south florida. you're going to blue cross-blue shield up in tallahassee. you won't get that there. all the best to you, sir. congratulations on your service in congress. wish awe happy new year. >> happy new year, thank you. adam: so we'll get the republican take from senator john barrasso just a lit later in the program. he is kook discussing right now with other members of the republican caucus in the senate. they're talking about all of this. obviously the final physical cliff deal affects everybody, every aspect of our money, the markets, the economy. some say no matter what the damage has been
diverted income tax hikes for most persons but delayed decisions on spending cuts. congress now needs to raise the debt ceiling, he says, so the government can keep paying its bills. if not, he says the consequences could be far worse than the impact of the fiscal cliff. >>> secretary of state hillary rodham clinton will fully recov recover, doctors are confident, from a blood clot in her head. she is said to be in good spirits and making excellent progress. the blood clot behind her right ear formed after a concussion from a fall. >>> justin bieber's sports car. he was not in the car at the time. the photographer was struck by another vehicle as he returned to his own car. officials say no charges are expected against the driver who hit him. >>> today an open house is being held in connecticut at a repurpose school for survivors of last month's sandy hook elementary massacre. teachers and other workers have been busy get thing the space ready for the students, painting and moving furniture. classes at the new facility begin tomorrow. counselors say it's important for children to get
set stage for another capitol hill battle as congress must vote to raise the debt ceiling. >> new this morning, gay marriage ceremonies are under way in maryland. same-sex couples have been able to get marriage licenses in the free state for about three weeks but the new law didn't go into effect until the strike of midnight in the new year. dozens of same-sex weddings are scheduled for today including some at city hall in baltimore and a mass wedding event at the black walnut point inn on tillman island. >>> maryland is also banning arsenic in chicken feed and allowing parents to freeze their child appear credit in an effort to prevent identity theft. in virginia, it will be harder for state and local governments to take property in the name of eminent domain. and insurance agents will now have to perform property owners if their policy excludes coverage for earthquake damage. >>> let's talk football. the redskins are still the talk of the town. >> the excitement over their first division tight until 13 years is overwhelming. tickets for sunday's game are all sold out through the
. congress and the white house will likely clash over the debt ceiling. the government could reach our spending limit by the end of february and republicans won't likely agree to raising that limit without guarantees of spending cuts. >> your taxes are still about to go up. a 2% payroll tax cut just expired. that means you'll be paying about a thousand dollars a year more in taxes if you make $50,000 a year or more. economists warn that it could slow the country's economic growth by .7% in the coming year. on the flip side, that costs the government about $125 billion a year. overseas markets are reacting positively to the fiscal cliff vote. stocks were up nearly 2% in asia. asian markets were down on monday over fears that a deal would not get done. european stocks are also up right now. >>> this congressional term is not ending without some controversy. >> but i am deeply disappointed, mr. speaker, and the people who have been damaged by sandy, including governor christie, a republican and governor cuomo, a democrat, should be deeply disappointed and yes, angry that this congress wou
of days before it up in this entire deal. cheryl: you mentioned the new congress coming in. of what point are we going to hear the debate about the debt ceiling. obviously treasury secretary gunnar coming out over the holidays adding another wrinkle to the debt ceiling debate say we will reach the $16 trillion level. do you think that will happen right away in the new congress? >> the first thing they will discuss after the clear this deal out of the way after the deal with the tax rates. if the house to approve this and the president signs it into law, we're talking about the debt ceiling for the next couple of months. we don't have that much certainty on how much room we have. we know it's $200 billion but that all depends on the specifics of the textile because remember, taxes are going up, but the fiscal cliff its full force and continues to hit full force, technically it already has a degree that helps the deficit picture and gives us more room as a country underneath that debt ceiling. we have already technically hit it. $200 of that extraordinary measures being taken to extend that
with congress to address government overspending. >> reporter: and the debt ceiling, before leaving for hawaii early this morning president obama urmged congress to raise it. >> we can't not pay bills that we already incurred. if congress refuses to give the united states government the ability to pay these bills on time, the consequences for the entire global economy would be catastroph catastrophic. >> reporter: no word when the president will sign the bill so in the end it was one day late but just in time for nervous veshz as markets re-opened this morning. tracie potts, nbc news, washington. >> investors appear to be reacting positively to the deal. the dow is up 2%. nasdaq up 2.5%. markets in asia and europe were also up today. >>> your taxes are still about to go up. a 2% payroll tax cut just expired. that means you'll be paying about $1,000 a year more in taxs if you make $50,000 a year. economists warn that could slow the country's economic growth but as much as .07% in the coming year. on the flip side the tax cut cost the government about $125 billion a year. >> this congressional t
. he is now telling congress that the u.s. government will reach its borrowing limit by next monday, the 31st. remember how much fun the last debt ceiling fight was? well, that news comes as president obama rushes home to washington, cutting short his hawaiian vacation in order to resume talks on the fiscal cliff. there are just five days remaining to strike a deal. we'll get to all that in a moment, but first, we begin with a massive winter storm that made holiday travel miserable for millions of americans, including me! winter storm euclid -- what, are we naming snowstorms now? euclid. you can lid? well, euclid blanketed much of the eastern half of the country yesterday, dropping blizzard-like conditions and record snowfall in the midwest, and by late afternoon, euclid moved northeast, bringing traffic to a standstill, forcing the cancellation of more than 1,500 flights on one of the busiest travel days of the year. the weather channel's mike seidel has more on the massive christmas storm. >> reporter: a major snowstorm has dumped over a foot of snow across parts of the midwest. i
. and the president says he's not going to discuss the debt ceiling with congress. so, america's fundamental problems are overspending and massive debt remain unresolved. in my opinion, we look more and more like greece. that's my opinion. okay. and later this hour, democrat strategist and former clinton advisor doug schoen tells the company, are we like greece? is this deal affecting america's prosperity. i'll ask him the top of the hour. and grover norquist, is he backing down from his no-tax pledge? is he hedging? find out, ten o'clock this morning. go to our facebook page, tell us what you think about the deal that we've got, you're happy with it. if you are, we want to know why. we'll read some of your comments on the air. tell us why we want that in there. the markets, they've got their answer on the fiscal cliff, a deal has been done, the result is yes, it is a rally. we're going to see a big gain for the dow. it's going to be big. the opening bell for this brand new year is next. night ♪ >> surely you recognize that music, don't you? that's played on the bah zuki? why are we playing that?
workers or they will not pay the country's billos time. congress must vote now to raise the debt ceiling and setting the stage for yet another battle on capitol hill. a new year brings new numbers on the paycheck of thousands san francisco workers. a higher minimum wage comes in . carolyn tyler has the details. >> the street prides itself on the salaries paid to workers in the back of the house. cooks and dish washers and a record high minimum wage rose in from 8.50 in 2004 to 10.24 an hour and jumps to 10.55. >> will it keep you from hiring. >> yes, we'll have to trim our staff down and have less employees. we can't give the raises because the money is not there . >> supporters say it gives workers and the economy a boost. it is going up in san francisco stince 2003, when voters passed a measure that automatically ties the minimum wage to inflation and cost of the living each year. >> san francisco is not losing business. businesses are not running away from us. we live in one of the most expensive counties in the country . we can afford and businesses can afford this and workers can de
other major fights are coming. the country is hitting the debt ceiling without raising it they would -- congress temporarily pushed off deep government spending cuts. >> there will be more deficit reduction as congress decides what to do with the automatic spending cuts we have now delayed for two months. >> reporter: we're already getting a look at how world markets are reacting to the legislation. more on that when i see you next. live in washington kyla campbell ktvu channel 2 news. >> we have much more on the fiscal cliff vote on our channel 2 website just go to ktvu.com. >>> this morning the taliban is comparing the plan withdraw of u.s. troops from afghanistan to the ebb of the vietnam war. in a statement they accused the u.s. of using it to declare victory and run strategy. and the u.s. is expected to leave a residual force in that country. a fatal shooting is under investigation. contra costa sheriffs deputies found a man in his 20s dead inside his apartment. investigators say it's unclear whether he committed suicide or the victim of an attack. before the shooting neighbors
was supposed to include raising the debt ceiling. that grand bargain fell apart and now congress is going to have to vote in pretty short order to raise it and republicans are already saying they're not going to do that unless they get some big spending cuts in return. you heard the president say repeatedly he's not going to negotiate over this again. he doesn't want to see the nation's credit downgraded. he wants congress to just pass it right away, but he doesn't control congress. so if he wants republicans to vote in favor of raising the debt ceiling, he may have to negotiate with them, norah. >> nancy cordkocordecordes. thanks, cordes. >>> vice president biden is getting much of the credit for nailing down the deal. the message is biden is back. good morning. >> reporter: it's a fresh start for biden, no question about it. he's been the chief negotiator with congress on the fiscal cliff. that was a good thing for biden after his foot in the mouth style. last night all was for given. >> i want to thank you for the work that was done by the extraordinary work done buy my vice president
,000 or more a year and individuals making $400,000 or more. but congress pushed off deep government spending cuts for two months and the country is hitting the debt ceiling. >> three set up three more fiscal cliffs. we are gonna look back on this night and regret it. >> president obama rejoined his family in hawaii this morning. the white house had no immediate details when the president will receive and sign the bill. >>> well, stocks are sharply higher due to the fiscal cliff deal but some market watchers are cautioning that the euphoria could be short-lived because of the many challenging issues that remain unresolved. the dow is slightly off, but remaining up more than 200 points. it's up now 235 at 13,339. well, despite the fiscal cliff deal, everyone's paycheck will still be at least a little bit smaller this year. ktvu's janine de la vega is in los gatos to explain about the end of the payroll tax holiday. >> reporter: good afternoon. this tax cut has expired and it will affect every wage earner. most people that we spoke to this morning had no idea that it would affect their paycheck
on families across america. >> the president said it will be a very busy 2013. the new congress will be sworn in later this week. there will be a number of issues they will have to tackle quickly. one thing this bill does not do is tackle the so-called dumping ceiling. the country will reach its borrowing limits in a matter of months if congress does not act. >> police say speed cameras slowed down drivers and looks like they are right. in is the day found speed cameras have reduced speeding and accidents on seven maryland roads. aaa which has criticized the program as a moneymaking machine, says montgomery and prince george's county counties have done a good job of tracking the balance for safety rather than just money. >> short and long term parking rates are increasing in parts of montgomery county. >> the price hike went into effect yesterday but it was a holiday so they technically will start today. this is for public parking in silver spring and no. but as the. areas where people like to go out and eat and shop -- silver spring abdnd bethesda. areas where people like to go out and eat a
. if you thought the fiscal cliff snuck up on congress, the debt ceiling bill that triggered this to begin with was signed into law in 2011. we have known from that day forward this day would be upon us if nothing was done. and everyone in congress has known all along what it would take to avert the blanket tax hikes and spending cuts that are mandated to start in the new year. how much time is that, by the way? 517 days, or you can call it one year, four months and 29 days, or 73 weeks or 12,408 hours. you get the point. your political leader is engrossed in a colossal waste of time. the tax cuts were enacted for ten years starting in 2001 and then extended in 2010 for another two years, so we have had exactly 12 years notice on that front. this should not be happening. even with all that time, the best hope we are left with is a puny tiny partial deal that averts tax hikes for the majority of taxpayers. the sequester, which is a stupid name for a stupid thing, which results in mandatory cuts that nobody wants, looks like the decision will be kicked down the road to be dealt with at anoth
for you what the president said yesterday about the debt ceiling. >> while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that they've already racked up through the laws that they passed. >> so he's drawn the line. i mean, what are they saving over on the republican side? >> well, certainly i don't think republicans would agree with that at all. in fact, keeping the debt ceiling out of this deal was one of the few wins for republicans and they see the ability to use that ceiling again as leverage to get the kind of spending cuts they say are needed to get the deficit under control and that was part of the negotiating position, you know, that mitch mcconnell took when he came in and worked a deal with joe biden, that they didn't put this in there. and that was a win for republicans. it's going to be tough for the president. >> here's what new york congressman steve israel said about not just the debt ceiling but all three of these imminent deadlines. this was a little earlier this morning. >> if we can
the break, not just the fiscal cliff, other big issues congress has to deal with, including a debt ceiling in a matter of weeks, if we can't get past the cliff, i guess what i'm going to ask you, ron is how much hope do we have that congress can tackle these other huge issues? >> well, look, i think that's the big story here. the context wit fiscal cliff and all of this has to be seen. it is whether red america and blue america are following mediate their differences and find reasonable compromises to move forward. we know democrats have won the popular vote five of the last six times for the presidency. they have kind of a structural advantage, i believe, and demographic change. we know republicans have an advantage in the house the way the population distributed. we know for at least the next two years, probably the next four years, going to have divide government. none of us are going away and really, you know, watching the inability to make this deal is ominous the next two years because it suggests that neither side, but i think probably more of the republicans, but neither side entir
ceiling is. it's a cap set by congress of the amount of money the federal government can borrow. right now the ceiling is at $16.394 trillion and treasury secretary tim geithner said earlier this week we could hit that debt ceiling on monday, on new year's eve and the treasury will soon start using what it says are extraordinary measures to keep the government from going over the limit so just to give you an example if you're a government worker, that can mean that investments that go into your pension could be suspended, but that won't even buy much time. the next question is, what could happen if we do go through the ceiling? well the treasury won't be able to pay the country's bills in full or it won't be able to pay them on time and that means that the u.s. could default on some of its obligations. what that would do, it would cause a huge ripple that would cause a huge ripple effect. that would hit your retirement accounts and any money in the marketplace. plus make it a lot more difficult for banks to give out loans for cars or student loans. and then on top of all that, government b
week from treasury secretary that we could hit our debt ceiling on tuesday. the perfect storm fiscal cliff debt ceiling. what is the debt ceiling? >> we are only allowed to borrow so much without asking congress. every time the president wants more money you have to go to congress to ask for more money. you have to have the people elected approve spending increases. 16 trillion in debt we are bumping our head on the debt ceiling right this menu. when you look at how much we are spending we are similar to spain and greece. it is not a pretty scenario. >> tell me this what happens when we judge up against it? >> everybody starts wondering when we are going to raise the debt ceiling. there's a debate because they don't like to. then you have all of wall street looking at this wondering if we will be able to pay our bills. you remember what happened last time around the market sold off 2,000 points over the 2 month period. it was dramatic and hurt people's 401 k's. if you can't pay your bills you get a downgrade. >> again. >> it's not going to be good news. you know what happens you can'
in the sand on one of the big fights coming up next, a showdown over the debt ceiling. >> while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that they've already wracked up through the laws they passed. let me repeat, we can't not pay bills that we've already incurred. if congress refuses to give the united states government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic. far worse than the impact of a fiscal cliff. people will remember back in 2011, the last time this course of action was threatened, our entire recovery was put at risk. consumer confidence plunged, business investment plunged, growth dropped. we can't go down that path again. >> the president draws a line on one of the upcoming fights. joining us now is mike allen to review a little bit about what happened yesterday. mike, we were not sure there would be a vote at some point. obviously the house felt a bit jammed by the senate. did mitch mcconnell jam john boehner and
the nation's debt ceiling. secretary geithner in a letter to congress did go ton say, quote, he would take extraordinary measures and say these extraordinary measures can create approximately $200 billion in head room under the debt limit. under normal circumstances the amount of head room would last approximately two months. however, given the significant uncertainty that now exists with regard to unresolved tax and spending policies for 2013, it's not possible to predict the measure. because of the uncertainty of the fiscal cliff they don't know whether they have enough head room to make sure the nation's debt ceiling doesn't reach limit within two months. the bottom line is even if we deal with the fiscal cliff in the next few days and avert that. there is another crisis with the debt ceiling looming in under two months, harris. big deal. >> harris: i know we have been talking about the weather. this too is is a perfect storm. ed henry, thank you. first time we are hearing. caught in the middle of a deadly trap. he was there when investigators say ex-con lured into ambush and shot them.
that congress has to deal with yet another bruising debt ceiling battle. >> all right. thank you. >>> why do you think lawmaker waited until last minute? there is a lot of questions surrounding that. we are getting a lot of feedback on our facebook page. >> william have bad hotwood says it was to, quote, act like they are doing something for their already overrated salaries. they do this almost every year. we need to force them to change the way they work us for. share your commends our facebook page. >>> still ahead this new year's morning. >> so, a deal has been reached mentioned in the senate. that doesn't mean the tension is gone. we'll take a look at what new year's resolution lawmakers may want to consider when we come back. (woman) 3 days of walking to give a break cancer survivor a lifetime-- that's definitely a fair trade. it was such a beautiful experience. (jessica lee) ♪ and it's beautiful (woman) why walk 60 miles in the boldest breast cancer event in history? because your efforts help komen serve millions of women and men facing breast cancer every year. visit the3day.org to regi
? >> does it matter? if you look at the bipartisan agreement that is have come to this congress, the multiple agreements to avert shutdown, a debt ceiling deal two summers ago, oftentimes started with negotiations between the speaker of the house and president and ended being mostly in negotiation between the two senate leaders, getting enough republican senate votes to give people in the house cover and providing a lot of democratic votes in the house to pass it. you will have conservatives in the house that aren't going to support any plan you put forward. >> regardless, right. >> so you need democratic support and this idea that what happened last week with the boehner back-up plan meant that no plan will pass at all is misguided. this is how it rolls out every time but it's a matter of how large in scope to be to get enough votes. you can't go too far in one direction and alienate democratic votes and in the other way the more middle of the road republicans who support boehner is going to need. >> some are saying it looks intractable given the sequester, the triggers that we
with them. maria, the president saying i'm not getting into a fight with congress about paying for the bills that we've already run up. that's is a direct reference to the debt ceiling that was hit yesterday. he's saying he's not going to have a debate. here's my problem with that. he shouldn't have to. the debt ceiling is a stupid technical thing that only exists in america and the law really has to be changed. it's as simple as that. people think this is very simplistic, you should have a credit card limit. in other countries, you pay for a law as you make that law. it's a silly thing. but for the president to say he's not going to have a debate about it, he is going to have a debate about it. apparently we debate about everything. >> if the president says it's a certain day, republicans are sure to say that it's not that day. look, yes, there will be a debate. i think what he was talking about, though, ali is we're not going to get to the brinksmanship and i think he hopes and all americans hope we don't get to the point where we were the last time we had the silly debate on the debt wher
see there, there is at least some willing bs in congress to take us over the debt ceiling. that's a much bigger deal than the fiscal cliff. like we saw in 2010, when the stock market went down 16% in a couple of weeks, if there's a real possibility of us going over the debt ceiling without an increase, there could be a debt downgrade, as mark said, there could be a big financial crisis. we'll be in much better shape in a couple of months to assess where we are. >> maybe there's more leverage there. senator pat toomey, thank you. get some sleep. >> thanks for having me, guys. >> you and dan and paul ryan go off and figure out -- >> he's got blue chip club for growth predictions. >> and they were shattered last night in a sad, hastily written -- i'm joking, pat. i love you. i'm just bitter -- >> thanks for coming on. >>> up next, how the markets will respond to the deal in washington. cnbc's brian sullivan next on "morning joe." >>> let's get to business before the bell with cnbc's brian sullivan. brian, how's this going to shape out for the markets? >> happy new year. looks like
, congress needs to deal with spending cuts they put off and there will be a fight over the debt ceiling. reporting live in federal hill, sherrie johnson, abc2 news. >>> so the deal is done and we won't pay anymore in taxes this year. but it's not true. the fiscal cliff deal keeps income tax rates at courage level for 98% but doesn't extend the payroll tax cut. more will go into socialsecurity. most lower and middle income familiesly vied -- families will avoid a thousand more in income taxes they will pay more for payroll taxer. >>> 2013 means changes are coming to health care. big thing to watch is with the health insurance exchanges. they have to be up and running by october 1st. only 18 states including maryland on thed to build their exchange -- opted to build their own exchange. other things to watch out with the health care reform act is contributions to a flexible spending amount is limited to 2500 dollars but you can deduct more unreimbursed medical cost when you file taxes but for that you have to itemize. >>> 5:33. in the new year it's off to a tough start for one county in si
ceiling fight, when i think back to the summer of 2011, the new republican congress had been sworn in and tea party fever was in full bloom. a bunch of people were new to governing and wanted to prove how tough they were and how out there and pure they were. i think we are in a different place now. we have just seen really republicans sort of gazed over the brink of the cliff and pulled back and allowed the bill to come to a vote. allow it to pass without a majority so to speak. i was wondering, you specialize in economics, if you can lay out what the catastrophic consequences of not raising the debt ceiling are, we sort of lost in this debate how objectionable it really is to hole the nation hostage in that regard over raising the debt ceiling. can you spell it out what it mean fist we default. >> that's a great question and it's important to understand that. if we were not to raise the debt ceiling and we were to default on our debt, that would be a catastrophic event of event. if you think about it, most of the world's economy is run dollars. it's what countries depend on. marke
their taxes go up. also not getting done, spending cuts. one analyst said today congress kicked the drone down the road, postponing cuts for another month. republicans say they will fight raising the debt ceiling without significant spending cuts. >> the president has maxed out his credit card and he's not going to get an unlimited credit card. >> he is back in hawaii today but president obama feels congress spent the money and will have to raise taxes further. >> i will not have another debate with congress over whether or not they should pay the bills they have already racked up. >> of late this afternoon, house republican leaders backed down over their decision to postpone a force and the victims after both parties blasted lack of action. now, congress will vote on $9 billion in aid and additional aid later when congress officially returns to the new session. >> we are going to stick with the fiscal cliff for a moment because lawmakers are not the only ones sounding off about it. we have reaction from taxpayers to how much more they will still be paying. >> it is a huge concern
geithner has warned congress hat u.s. will reach its debt ceiling on monday. that is when the government reaches its legal borrowing limit. now, this could pose a bigger threat to the nation's credit rating than the fiscal cliff. treasury can keep the government operating for a few weeks using emergency measures, but congress needs to act on this too to avoid a full-blown debt crisis. alina cho. joins us with the ret of the top stories. >>> former president george h.w. bush remains in intensive care in a houston hospital with an elevated fever. he is on a liquid diet an his condition is listed as guarded. his spokesman quotes him as saying i'm determined not to be dprumpy with all of this. >>> toyota has agreed to pay up in a major way, $1.1 billion to settle a class action suit over sudden acceleration issues. under the deal toyota will install a brake override system in effective cars. it will also set up a fund of $250 million for former toyota owners who sold their cars from september of 2009 through all of 2010. that money would compensate owners for their car's reduced value becaus
borrow, unless congress raises the so-called debt ceiling. an automatic, across-the-board cuts to the pentagon and other agencies, are only to be delayed for two months, setting up another from fiscal cliff on march 1st. congress has adjourned. and late last night, after midnight, the president left for hawaii to meet with his family. and hopefully, he thinks for a few days' vacation. >> you mentioned the breathing per feelings got raw at the last minute. >> reporter: it got really nasty. politico first reported on friday when the congressional leaders met here at the white house, speaker of the house john boehner told the democratic leader, harry reid, off, use uhhing language i can't use here on "good morning america." >> you can't even paraphrase. >>> let's look at what the deal means to you at home. lots of paycheck changes right now. and bianna golodryga is at the smart screen to break it down. about 99% of americans protected from an increase. but most workers will take a hit. >> payroll taxes going up. this affects everyone making $110,000 or less. so, this year, anyone
to be standing in line for bread. that's not going to happen this is all because congress kicked the can down the road. after the debt ceiling, which was a real crisis. and so by not completing resolving that issue in a substantive manner. we now are here at this fiscal slope as i like to call it, not cliff. >> laura: presumably, no matter what you say about what happened a year and a half ago, the president was part of that equation, right? he is the president of the united states. >> he is. but there are three branches of government. >> laura: accountability for that as well: that's for sure and the democrats didn't get around to actually passing a budget so we need to move on to that that guy, we are going to have the republicans have only so much leverage. in effect they don't have a lot of power here, do they? not really i think we learned that speaker boehner own party we can go back as you said to the debt ceiling debate. the only reason we have cliffs and crises because democrats, particularly in the senate have completely abandoned the legally mandated budgeting process. we have not
when the fight over the debt ceiling happened, there was a small group from congress that was a -- was supposed to come up with the deal on cutting the deficit before the end of the year and they did not. that was pretty predictable. so what congress did and the president, they sort of tied themselves to the math. they said, ok, if we cannot come up with a deal, there are going to be automatic spending cuts of $1.25 trillion over 10 years that begin january 2013. and those spending cuts were divided equally between military -- or what they call ended securities -- that is also homeland security and other associated kinds of cuts. and nonmilitary. and thus did not or do not include medicare, social security and benefits for veterans, but all other spending federally is in there. some medicaid, farm aid, programs on the port, energy programs, etc. those cuts are between those two areas. that is part of the kicking the can down the road. it just happened because they have agreed to put off those cuts for 60 days. a big part of that sequestration deal or what people are t
.s. treasury department officials have alerted congressional leaders about the debt ceiling. the government will reach this in about two months and the country could suffer a self-inflicted default. congress currently sets the borrowing limit at $16.4 trillion. the national debt rose because of a series of deficit-covering bonds were issued. the government and the republican party are at odds over the issue. the political stalemate in the summer of 2011 over raising the debt ceiling caused a plunge in stock prices. standard & poor's, the american credit rating agency, has downgraded u.s. government bonds from the top ratings for the first time. here are the latest market figures. >>> the chinese are trying to go head-to-head with the americans in the multibillion dollar sat nav business. their new navigation satellite system or bds is now offering service in the asia-pacific region. >> translator: bds will be used for both military and civilian purposes. it is useful in setting up china's national defense. >> chinese government representatives say the country has launched 16 satellites for
for action. the latest news out of washington tonight, treasury secretary tim geithner told congress that the country will hit the debt ceiling on december 31st, new year's eve, some two months earlier than expected. but there is still no date yet on when the house of representatives will be called into session to veto a vote on any deal. president obama cut his hawaiian vacation short and is due to land in washington tomorrow. but if politicians aren't feeling enough urgency, the american people certainly are. a new gallup poll shows that 50% of americans think a deal is likely. that's down nine points from just a few weeks ago. if we go over the cliff, it will affect all of us. if you're a family that makes $50,000 a year, your taxes will go up by $2,000. if you make $100,000, your taxes will go up by $4600. the combination of tax hikes and deep spending cuts could end up looking a little bit like this, over the cliff in a free fall. whiskey and cigarettes in hand. "outfront" we have the view from both sides of the aisle. democrat from arizona and republican from wisconsin. earlier
of the gamesmanship in the beltway. how does it effect us. >> we are going to hit the debt ceiling monday if that is not resolved, and telling congress in a letter that i read, tax filing season, and that hurts consumers in the wallet, and, you know, we've been talking to goldman sachs, fidelity, showing us sectors that will be hurt, not only just because they rely heavily on government contracts, what goldman sachs said, it's not just defense, but health care, you know, environmental waste services, and fidelity says, watch out, banks are going to get, of course, hurt too. mia activity is off 20% because they -- the capital investment, the capital spending is not there. you know, rich edson has been reporting this that, you know, it's hanging right now on the house. there's more than a dozen seats that the democrats hold in the senate that are -- those guys are in the red states so if they vote for any type of tax hikes with the midterms coming up, those senate democrats are looking for cover from the house. house moves first to give them political cover. then you go over the cliff, this
in march we may see another round of fighting. president obama says he hopes congress can reach an agreement with a little less drama. >> katie: what are the chances that republicans go along with raising the debt ceiling? >> we've seen there fight before. republicans will probably have to go along with it because the country will reach its borrowing limit, but republicans see it as bargaining tool. they wanted deeper spending cuts and deficit reduction and probably end up getting it. >> katie: thank you. today one of suspects in a murder of former winery owner at his mansion will be in court, 21-year-old javier garcia will be arraigned and 23-year-old man should be in court and lou cast anderson was already arraigned and one other was booked as an accessory in the death of his mansion during a home invasion in november. our media partner says they portray him as a ruthless businessman accused of hiding millions of dollars of assets from creditors. >>> dramatic new video of the arrest of the driver that killed two people while running from police in san francisco. police approac
anew soon after his inauguration when he has to ask congress to extend the nation's debt ceiling, rick. rick: it never ends. wendell goler live in front of the white house. wendell, thanks. heather: and more now on the fallout from the fiscal cliff deal as we take a look at the major players on both side of the aisle and figure out the winners and the losers in this big fight. let's get a fair and balanced analysis with richard goodstein, democratic politicalcut ant, former advise sore to secretary of state clinton during her presidential run. tony sayegh former aide to vice-presidential nominee jack kemp and president of take radio news service. we shouldn't really call this a fiscal cliff deal. this is just the senate's bill. the senate vote 89-8 in favor the bill. it extends decade old tax cuts on income up to 400,000 for individuals, 450,000 for couples. cuts only 15 billion in spending while increasing tax revenues by $620 billion. that is a 41-1 ratio of tax increases to spending cuts. so who are the winners and losers? we'll play a little game. i will toss out some names to you,
turned from thanking congress to calling them out over raising the country's borrowing limit, the debt ceiling, necessary within weeks. >> while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that they've already racked up. >> reporter: many in both parties remain frustrated that the fiscal cliff deal does not cut the deficit. >> i severely regret that this is not a big, bold, balanced plan. >> reporter: and that will be the next washington drama. >> we also need to address the fundame fundamental causes of our debts and deficits and that's out-of-control spending. >> reporter: columnist david brooks criticized congress for setting up fights by avoiding hard decisions. far from laying the groundwork for future cooperation, it sentences the country to another few years of budget warfare. the president opened the door to reducing entitlements to reduce the deficit. >> i agree with democrats and republicans that the aging population and rising cost of health care makes medicare the biggest contributor to o
said the united states will hit the debt ceiling on monday unless he takes extraordinary measures. they believe it could force congress to come up with a deal before monday's deadline but some republicans are not as optimistic. live in washington, ktvu channel 2 morning news. >>> they set $2 billion for unit who made her first court appearance. she was drunk when she hit a group of people. the woman was knocked up to a hill and she was studying criminal justice before that police crash. >> she is somebody who was never in trouble before and a quarter short of graduating from college. it is horrible of what their family is going through. >> eunice is expected to enter a plea on monday. >> more than 100 volunteers will be recording every bird they spot. it is part of the christmas count. this year's data is important and they are using it to predict climate change but the first part took place december 16th. how a northern controlled count of sea otters could help with global warming. >>> the windy city will soon have the nation's most expensive downtown parking meters new year's da
million people. what it doesn't do however is raise the so-called debt ceiling and two months the government will reach the limit on borrowing unless congress acts. not to mention the bill delays large cuts to the pentagon and other government programs. so in march we may see another round of fighting. president obama says he hopes congress can get a deal done with a little less drama. abc news, washington. >> not all law makers are satisfied with the new fiscal cliff idea. andy harris is one republican who voted against it. released a statement reading, ioppose the legislation increase being tax on 77% of my people in my district. harris goes onto say the bill is business as usual in washington doing nothing to deal with the 16.4 trillion dollar debt. >>> so when harris says it will raise taxes on 77% of americans he is talking about the end of the pay he roll tax holiday. basically what it means is the amount taken out of your paycheck for social security will go up 2%. for most americans that means we will pay a thousand dollars more in tax this is year than last. >>> this
over the debt ceiling again. >> we can't not pay bills that we've already incurred. if congress refuses to give the united states government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic, far worse than the impact of a fiscal cliff. >>reporter: now, the u.s. went over its debt limit of $16.4 trillion debt limit on monday. yesterday treasury secretary timothy geithner sent a letter to congress telling them that the treasury has begun to take extraordinary measures to keep paying its debts but warned that those measures will run out on february 28th. wisdom and sarah. >> all right, melany, thank you. >>> after days of dealing with fiscal cliff negotiations, president obama will return to hawaii to finish his vacation. the president left last night and the obamas began their annual end-of-the-year vacation back on december 21st, but the president, of course, forced to return to the white house last week for fiscal cliff talks. the obama family returns to the white house this weekend. >>> well, one piece of business the house
of the 112 congress, their belief is they are doing precisely what the people who elected them did, which is rolled back obama initiatives, cut spending. a lot that the debt ceiling should not be increased under a circumstances where they feel like i was a failure. but they basically believe their job is first to obstruct barack obama and once there is a republican president in place to pass this initiatives that create better business climate. more and more deregulation committee funding of programs that have never quite been near and dear to them. i think they do believe -- of course to fast-forward a bit about the debt ceiling fiasco of 2011, but after the summer we were taken to the brink of a fiscal cliff, one we are about to see it it can come in to thinking part of the house republican leadership was maybe her tea party freshman will go home, get yelled at by constituents and they'll realize this compromise is not such a bad thing. the opposite occurred. he went home and people go to town halls tend to be the activists of their party and those people tend to be tea party and everyo
an ally. ally bank. your money needs an ally. ♪ gerri: well, a brand new session of congress starts tomorrow, but another budget battle looming perris in the debt ceiling. back with me now, democratic strategist, before we move on to the debt ceiling, i want to show you the breakdown of the vote on the fiscal cliff. among the leaders, this is interesting, the speaker, unusual. he voted yes on that bill. normally does not float. eric cantor voted no. paul ryan voted yes. what does that tell you? >> there is a split the republican party into a certain extent, biden is a big beneficiary. the speaker is the person who lost the game now proven that you cannot produce the caucus. there is no power unless it can produce. the majority voted against. gerri: he said the democrats rode the republicans. what will be the result? >> i think will see. whether he is reelected as speaker, he probably does. if it was by design, they were trying to give everyone cover. if it was by default than they have a lot more problems than you think. it just strengthens the president's hand going into this next
. >>> while congress was focusing on the fiscal cliff the u.s. hit the debt ceiling monday. lawmakers have approximately two months to raise the borrowing limit or risk having the government default on its financial obligations. >>> a royal dutch shell drilling unit has run aground on an uninhabited alass khan island. the company and coast guard crews have been trying to get the rig to seattle. the rig went adrift near kodiak island off the southern alaska coast. winds up to 60 miles an hour and waves as high as 28 feet made the recovery operation treacherous. there's been no oil spilled in the area, alaskan officials say. >>> according to politico the new york state rifle and pistol association is calling for nationwide boycott of "the journal-news" advertisers and any business that advertises with the paper's owner. they published an online news of names and addresses of pistol permit holders. the paper says it will continue adding names to the map. >>> two and a half hours from now the house begins debating the deal to avert the dreaded fiscal cliff. the senate overwhelmingly passed the
also warned congress in a letter yesterday that we will reach the nation's debt ceiling on monday. that's when the government reaches its legal borrowing limit. treasury can delay a debt crisis for a couple of weeks until february or march using emergency measures to keep the government operating until congress acts to fix this problem, too. >>> big news from toyota. they are announcing a record $1.1 billion settlement over that unintended accelerator issue which they say does not exist. toyota has always said it's been floor malts, stuck gas pedals and operator error but they're going to settle these cases to put it behind them. the bulk of the money will go to its customers past and present. they will install brake override systems for all vehicles identified by toyota as having a problem with the floor mats getting stuck. toyota set aside $250 million to compensate owners who sold their cars while their sales were plummeting over the bad p.r. and a separate 250 million will be used to compensate owners who don't qualify for that brake override system. finally, all 16 million current
bye about two more months of the debt ceiling. a year and a half ago what had been a routine vote in the congress usually and suddenly became a huge battle. why? because republicans say that is a mechanism they have raising the debt ceiling, some the president and treasury secretary want that forces the president to the table to have more spending cuts. the white house insists he will agree to other spending cuts without in their words being hold hostage by the gop. the war of words will begin again. in two months another fight oh over the sequester. the across-the-board spending cuts that both sides say they hate and yet they are kicking the can down the road again. number two, a big fight again over lifting the debt ceiling. paying the bills or reaching the limit on our bore are rowing authority. that is the underlying thing here is that if any one thinks the quote unquote deal if it goes through the house and senate and signed by the president in the next 24-48 hours if they think that is the end there is another big budget battle coming. two of them about two months from now,
is going to perhaps stabilize a little bit. and then when they get a wif of the debt ceiling, it will be up and down again. >> thank you, chris. >> when we come back, it was one of the most dysfunctional congress ever. certainly the most unpopular. you're watching msnbc. the place for politics. this reduced sodium soup says it may help lower cholesterol, how does it work? you just have to eat it as part of your heart healthy diet. step 1. eat the soup. all those veggies and beans, that's what may help lower your cholesterol and -- well that's easy [ male announcer ] progresso. you gotta taste this soup. >>> welcome back to msnbc's special coverage of the breaking news from washington. if you're just joining us, we can report that there will be no vote in the house tonight. there's no bill for the house to vote on. it's still another chapter in the story of the do-nothing 112th congress. over the past few years, the number of bills passed has actually gone down. 460 in the 110th, 383 in the 111th. in this current 112th congress, just 219 bills. the lowest since they've been keeping records.
to have another debate with congress with raising the debt ceiling. it's one thing to say that but it's another thing to make it happen, right? >> the way he negotiates is -- >> bill: to give away the store. >> yeah. >> bill: i think he will hang tough on this. because i think he learned his lesson the last time, but even if he does it doesn't mean the republicans are going to agree with it. >> i think there are numerous occasions where people say well obama learned his lesson last time, he won't do that this time. but we'll see what it means. >> bill: mark is calling from denver, colorado. happy new year. >> caller: thank you. i want to make a comment about the payroll tax which as i understand it is going to be going up. >> bill: it has already. >> yes, which is going to hit me immediately, because i am a paycheck to paycheck earner. meanwhile president obama caved on the 250,000 and up. like your show dearly bill, but how many times do you have to get burned before you say fire hurts? [ laughter ] >> bill: fair question mark. i just want to point out. i'm in goo
's the $16.4 trillion debt ceiling. we just hit it according to the treasury secretary and the president already drawing the line in the sand for that fight. >> i will not have another debate with this congress over whether or not they should pay the bills that they've already racked up. if congress refuses to give the united states government the ability to pay these bills on time, the consequences would be catastrophic. >> brianna kealar is live from washington working triple duty for us. so tell us more about what is not included in this deal and what battles are now looming in congress. >> let's say first what is in the deal that is important to note. and that is that when you're talking about these tax cuts that have been extended for people making $3450,000 or less as a couple $400,000 or less as an individual, they're prmly extended. so that's pretty significant because that isn't just some stop gap one year, two year measure. the issues that aren't tackled are what the fiscal cliff was supposed to serve as an incentive to do and that is dealing with the fiscal health of the count
will not have another debate with this congress over paying u.s. bills up against the debt ceiling debate. republicans and mitch mcconnell working very closely with vice president biden signaled that that debate is coming. that very debate that the president said he will not have, again. let's bring in our panel for final thoughts. steve hays, amy stoddard and charles krauthammer. charles? >> i think the president laid down the marker. we have to increase investments which is democratic way of saying spending growth, bridges, are indeed education etc.. so it's clear he wants to increase spending he's willing to give a nod to a cut here and there but wants more spending and more taxes that. is what he said again and again. we have to raise revenues, close loopholes so he's going get a seconds shot at raising taxes. that, i think is his objective. he repeated this idea i'm not going to debate. speaking about raising the debt ceiling. i think that is a bluff he cannot keep. he's going to put the economy in jeopardy. last time we had a debt ceiling issue his pop lrt sank. sank from republican
. and the boehner rule, that is you want a trillion of debt ceiling increase because you've overspent by a trillion, which the president is doing for the next four years, you have to cut spending by a trillion or no deal. >> last time i looked congress appropriated the money. it's bills passed due. >> which congress? the republican house of representatives all voted against that. the spending that's -- >> plenty of other money in there, though, this congress voted for, the house-led republicans went along with a lot of spending in the past two years. look, at this stage, john boehner could have had a deal a couple of weeks ago that would have included some modification on the c.p.i. for social security recipients, and the president said, as well, some adjustment against the wishes of his own party members, he was willing to talk about the raising the retirement edge, the eligibility age. >> democrats in senate said that was off the table, that was never a reality. second of all, we're in a position that we're dealing with spending cuts -- >> didn't john boehner reject a better deal from his values,
that the voting begins. there is some progress report this evening, though there are no guarantees. congress will act to resolve this. tom: this sounds a little bit like bob woodward's book to by bob woodward's book when he talked about the debt ceiling fight back in 2011. mcconnell, from the way i read it, mcconnell and reid took it away from the president and said , let us to work our own deal by ourselves, kind of cutting him out of the negotiations. >> that's basically it. with the president said was, you can come up with an alternative plan, one that can pass both houses of congress. if not, the president wants a vote on his plan only in the senate and in the house. the house leaders were non-committal. you also go back to the first time the bush tax cuts were expiring back in 2010, that was a deal cut between vice president joe biden and minority leader mitch mcconnell at that time where they stand at all the tax cuts and apparel tax cut and the unemployment benefits. so the leader coming in again trying to up for some type of compromise and get to the senate. for now the white house i
. >> congressman rangel, this confidence in government question, why should americans be confident in congress, in you, when we have been down this road before in the debt ceiling fight of a year and a half ago and it is totally dysfunctional. we cannot get a deal or a compromise. it is one cliff after another. >>guest: come on now, we are bringing good news we are already there and you are saying "what if." you are probably right. these are problems we will have to face. >> you think we are almost there but senator john mccain is throwing up his hands. >>guest: senator john mccain and i are in the same position, outside of the loop. we are not involved in the negotiations. we had some good news just a few minutes ago that we probably are close to resolution, a temporary resolution of the problem. this is not the time for us to be complaining about problems that are going to be down the road. but a temporary resolution is like the banned phrase. we can we just put the period on this and move on? we need a grand bargain. >>guest: we all want a grand bargain but the people at the stock market ar
a deal and insisted it won't happen again when the debt ceiling battle comes around. >> i will not have another debate with this congress over whether or not they should pay the bills that they've already wracked up through the laws that they passed. the one thing that i think hopefully in the new year we'll focus on is seeing if we can put a package like this together with a little bit less drama, a little less brinksmanship, not scare the heck out of folks quite as much. >> major garrett is in the white house briefing room where the president made that announcement just hours ago. major, good morning. >> good morning. >> major, just to start with what was the reaction from the white house once this deal finally passed? >> there was many reactions but i would say the three dominant words described as this relief a sense of triumph and also a sense of regret. let me take those in order. there was genuine relief in the building that the deal got passed. there were hours of very profound anxiety here yesterday that the house would not pass. there really
of the morning, treasury secretary tim geithner unveiling a plan to buy time under the debt ceiling. in a letter to congress, geithner saying that treasury is going to begin taking steps this week to delay hitting the government's 16$16.4 trillion borrowing limit. treasury will take several measures to save that next year to keep the government from reaching the limit for about two months. but geithner warns it is harder to predict how long the delay will last because of all of this ongoing fiscal cliff negotiations making it harder to forecast what revenue and tax spending will be next year. >>> the journal says right here the white house and congressional leaders have shown no signs of progress in the senate or elsewhere. and then, you know, i don't think we've run this bite enough. >> tim geithner told steve liesman. >> i have it ready. >> that he is we should show it multiple times. >> tt is the administration prepared to go over the fiscal cliff? >> oh, absolutely. there's no prospect to an agreement that doesn't involve those rates going up on the top 2% of the wealthiest -- remember, it's
if they get something done by midnight or the first two days of the few congress, we've got a bigger discussion that's looming, and that's on the debt ceiling. so you're going to see the republicans, they're going to cave just to keep the tax increases from going up. but they're going to hold that over the democrats' heads when it comes to the debt ceiling. liz: keith, tell the traders from all of us at fox business we wish you a happy new year. >> will do, and the same to you all. liz: thank you very much. a bit of a breaking angle here that not a lot of people are talking about, and it was only until michael woolfolk jumped up on here, he said, liz, watch out. if washington is unable to come up with a deal or comes up with a deal that the ratings agencies don't like and we get downgraded, the u.s. credit rating gets downgraded, this could be a real problem. but right now the greenback is the flight to quality. let's get to michael right now, it's a fox business exclusive. you and i were just talking in the commercial break, and you said watch out. s&p already downgraded the u.s. a
that doesn't really make much sense because the debt ceiling doesn't mean members of congress are going to be agreeing to incur another trillion or 2 trillion dollars worth of debt. all it does is allow us to borrow for the decisions that have already been made by past congresses. so when a past congress does a spending increase that is destined to increase the chances we have to borrow more. and so the debt ceiling is really not a break or a statement on past or future policy. it's simply something that's allowing the economy to continue to move and that's a problem because it's kind of unusual that a country such as ours has to have a device where congress ultimately has to allow the treasury to continue to borrow. guest: if there's one change i would like to make in federal budget process is that when you vote for a tax increase -- tax cut or spending increase, you also have to vote to increase the amount the government has to borrow to finance that. that is, it's immediate. so you don't get a free vote. you don't get to vote for a tax cut or spending increase but not admit that you'
by this congress. to have argument or debate and create further uncertainty about the debt ceiling would only again give moody's, for example, a chance to lower our bond rating. we don't want that to happen. bill: you want the government to keep spending unchecked? you're making case there shouldn't even be a debt ceiling. >> shouldn't be a debt ceiling. because debt ceiling pertains to money already spent. issue is spending itself. if you don't alou debt ceiling to pay for bills already incurred we default and then we've really got a problem. debt ceiling is phony issue. not phony for us to talk about, it is for money already spent. bill: all right. tucker, let you respond to that. ceiling first established in 1917. put on the screen. raised 102 times since first created. congress voted to raise the debt limit 11 times since 2001. i saw you shaking your head, tucker. >> of course we had this almost 100 years. this was created when we issued debt to fund the first world war. we're not getting rid of the debt ceiling. factual point i think alan misstated here. the credit rating was not downgraded ov
and to try to have all members of congress carve a real grand bargain before we hit the debt ceiling limit and with the sequester. there is time to address that. positive comment by congressman murphy. >> want you to listen to this conversation i'm about to have. one man responsible for wrangling republican votes in the house is the deputy whip. congressman who serves on both budget and appropriation committees is "outfront." congressman, good to see you again. thank you for being with us. you have been a voice of reason on this thing for some months right now. i know you don't like to bring this up and you don't like when it's brought up but you were one of the earlier ones to say let's vote, get this tax business out of the way, stop democrats from focusing on it, then turn the discussion over to spending. your own party slammed you for saying that. now it looks like they are coming around to your point of view. >> well, i don't think they slammed me. look, you expect to have a spirited dialogue and disagreement. that's okay. that's why you put these things out there. but i do think we a
't raise the debt ceiling. in two months the government will reach the limit on borrowing unless congress acts, not to mention it delays large cuts to the pentagon and other programs. >> so in march we may see another round of fighting. president obama says he hopes congress can strike a deal with a little less drama. >>> some dramatic temperature readings this morning. are you feeling it? we are in the mid 20s. >> it's very dramatic to me. >> what is going on. >> good morning. as we get down to 28 in livermore and 29 in fairfield. and 27 in santa rosa. it's colder and that is what we're talking about. 30 in concord and napa and freezing in redwood city and getting close in mountain view and san jose at 34. 36 at antioch. 34 at san rafael. low 40s east bayshore. mid 40s around san francisco. 44 at half moon bay. we do have a small slight wind so it does feel about one to three degrees cooler in some areas when you are outside this morning. let's talk about the chilled sunshine. it will joined with a few high clouds, upper 40s for lunchtime temperatures. low to mid 50s as we head through t
the debt ceiling you will have close to armageddon at the end of february and march. adam: spencer i take issue what about our politicians being the worst. our congress is the best congress money can buy. don't forget it. jonathan he is talking about armageddon because of the debt ceiling. i would be terrified if i were not in the market putting my toe in this. there will have to be buying opportunity if people panic and sell. >> which market, adam? that can be the story of 2003 and headlines are obviously scary they have a tendency to sell stocks and buy bonds. that is the safe move. i think the reverse will be true in 2013 and stocks will look quite attractive versus bonds. a highly manipulated market government stepped in and tried to hold interest rates low. once inflation starts to show its head, i think bonds, supposedly the safe asset that could be where the real danger lurks in 2013. adam: jonathan i will let spencer respond to that i heard similar comments last four years get out of bonds, get out of bonds. spencer, what do you think?. >> i don't see anything compelling about sto
that the congress should pass and last night when it came to the briefing room he said he was flexible and compromise on deficit reduction but a minute later said he is not going to compromise debt ceiling. >> while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that they have already racked up through the laws that they passed. >> now white house officials says the president is firmer about that because he believesat kreiger a year and a half ago scared the markets, scared consumers and had a big bad impact on the chief, john. >> don't republics say that the debt ceiling is the only tool they have to get the president to cut more spending. >> that's right. they are basically saying look at a time when we have $16 trillion in debt. we have to have this debate. and republicans like richard shelby said today that the real problem with this deal from last night is that it doesn't cut any spending. take a listen. >> this will be part of his legacy. the failure to step up and do the big thing when he could,
, what is the chance we're doing this in february alling to with t ing i together with the debt ceiling and everything combined. >> that is an interesting question. we are talking about the debt ceiling. here, you will see a slight change in style of congress. there is a camp in the republican camp that says let's do nothing until we get to debt ceiling because that re-established our ledge. there is a movement that the president and congress say we're not going to play hostage again where we get downgraded and the country is on a real cliff and not pay our bills. there is a chance democrats look at republicans, say, fine, don't raise the debt ceiling, the fault of the united states of america will be on your shoulders. i hope we don't get that and get the out-line of a deal in coming weeks. it will have to address everything, tax writing committees and spending committees to do the larger deal, grand bargain in time. the debt ceiling thing, i hope that comes off the table. >> what's your thought on raising the retirement age at any degree, i'm sorry the age of eligibility for medicare
. congress has about two months before it has to raise the debt ceiling or risk causing the government to default on its bills and financial obligations. then we maybe get our credit rating lowered. you remember all those tricks. treasury secretary timothy geithner says the government will use a series of accounting measures to avoid defaulting on its debt. now, on monday it suspended the issuance of new debt for two government retirement funds reaching the limit sets up another big fight between the white house and congress over taxes and spending. in the new year sounds like the fiscal cliff all over again, right? that's because it is. >>> the markets are closed today for new year's but on monday wall street ended 2012 on a very high note. the dow jumped 166 points, finished the year up 7%. nasdaq really the leader here of 59 points yesterday. closed 201215% -- 2012 15% higher. >>> the health of the economy could influence whether a child picks up unhealthy habits. scientists found children who grew up during times of unemployment rates were high, were more likely to drink, smoke and
. this is indication of the poison atmosphere up here. when the sequestration runs out next few months and congress must vote to increase the debt ceiling. it appears speaker boehner is fwirding for a fight on both fronts in a statement that he issued last night. he said in part, quote, now the focus turns to spending. the american people reelected a republican majority in the house and we will use it in 2013 to hold the president accountable for the quote, balanced approach he promised. meaning significant spending cuts and reforms to entitlement programs that are driving our country deeper and deeper into debt. the president last night indicate he is open to come promy to spending cuts but drew a line when it comes to the debt ceiling. here's the president. >> now, one last point i want to make. while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that they have already racked up through the laws that they passed. let me repeat. we can't not pay bills that we have already incurred. >> reporter: that in turn drew t
% more spy stuff. what's in your wallet? this car is too small. >>> while congress has been arguing over the fiscal cliff, the next big battle has already arrived. treasury secretary tim geithner says government borrowing hits the debt ceiling today. with me now, former new hampshire republican senator judd gregg. he's currently co-chairman of the campaign to fix the debt. senator, let's -- i want to start 50,000 feet, and we'll move down closer to ground level, but as a former member of the senate, we've now had two grand bargains, one around the debt ceiling, one around the fiscal cliff, seemingly, well, on the debt ceiling definitely, and on this one, seemingly fall apart. now that you're on the outside, are people right to be skeptical that congress can do anything? i hesitate to say big. even medium in terms of addressing our debt and spending problems? >> oh, they're absolutely correct in being skeptical, but congress can act. it has acted in the past. regrettably, it usually acts in crisis. for example, during the financial meltdown, when the entire banking system of our nation wo
to compromise. >> then he added he is not compromising on or negotiating about the debt ceiling. >> i will negotiate over many things. i will not have another debate with this congress. over whether or not they should pay bills they racked up. >> the white house officials say the president has the position because the last debate was harm to feel the economy. republicans insist we can't afford to not have the debate when we're $16 trillion in debt. they believe this is the only weapon to force the president to cut more spending. bret? >> bret: ed henry live on the north lawn. thank you. stocks finished ahead today now. that the fiscal cliff teal is in the books. the dow added 308. the s&p 500 was up 36. the nasdaq closed ahead 93. get analysis now of the wall street reaction. and reaction from world markets to this fiscal cliff deal. from melissa francis. markets seemed relieved today. why? >> we saw the dow go up. mostly because the deal got done. they liked something rather than nothing. the markets usually go up. if you look at the last couple of years since 2009, they have gone up
the debt ceiling. president obama said he is not willing to talk about that, he is not willing to compromise on that. i think this is wishful thinking. he asked to do that because the congress has to agree on that and the republicans -- he has passed to do that -- he has to do that because the congress has to agree on that. >> to find out how global exchanges have responded, we will hear from frankfurt in a moment. first, this report on the first trading day of the year, starting in asia. fanfare for the start of the new trading year in south korea. analysts here are optimistic, despite the eurozone's continuing debt crisis and concerns about flat economic growth in developed countries. news that washington had sidestepped the fiscal cliff boosted markets across asia. >> people are very relieved this morning because the u.s. is very likely to fix their own problems in the next few days. >> the kospi index had a rise of 1.7%. the hang seng climbed above 23,000 for the first time in more than a year-and-a-half. most analysts are still urging caution and say that many of the world
ceiling and people's eyes glaze over. i want to talk about what the debt ceiling is. it's a cap, set by congress, the amount of money that if federal government can borrow. the current creeling is at $16.3 trillion and what secretary treasurer tim geithner said we could hit it on monday, meaning new year's eve and what the treasury will start doing is using extraordinary measuring to keep the government from going over the limits. so let's say for example you're a government worker. that could mean that the government could go into your pension. then what could happen if we do go through the creeling? well, the treasury won't be able to pay the country's bills in full or on time and that means the u.s. could default on some obligations. it would cripple the economy, send markets into the tail spin. that could hit retimer savings or anything you have in the marketplace plus it would make it more difficult for bangs the give out loans for things you're looking to get like cars or student loans. pile on top of that government benefits. i'm talking about social security checks and milita
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